The future of insurance claims and industry
The future of insurance claims and industry.
What happens now if you have an auto claim?
For example, you typically have to go through and answer questions for 10 to 15 minutes explaining everything that happened.
So what we’re seeing is think of the technology that’s now becoming available in cars.
It’s going to really accelerate over the next decade that’s going to allow the insurance company to get out most of that information automatically.
They’re not going to have to ask about the damage because sensors in the vehicle will already tell them what’s damaged or whatnot so instead of having to ask you 40 questions to understand.
What happened they’re going to have to ask you simple questions like you ok do you need help.
I think there will be automatic payments so before you even file a claim the insurer will have a perspective of what the incident was what the damages were and you’re going to be getting a check or not even a check a direct deposit immediately as an incident occurs.
The customer very often won’t have to talk to anybody.
It will be much more self-service oriented we also will have a lot of new digital channels that will have a much leaner much faster process for the consumer.
You will have a lot of more transparency you will always know what’s the status of McLane you can always contact the insurer.
Whenever he wants in which kind of way and Channel he or she wants another important part is prevention.
I think that will be a major focus in the next five to ten years for insurers because obviously the best claim is the one that doesn’t happen at all.
That will change we will have sensors that will basically notify the consumer before the water leakage happens I believe one of the more fundamental changes in the claims organization would actually be the role of the claims manager.
So there are three stages in my view in that role evolution the first one is what I call the firefighter.
The second stage is the coach and the first stage is the integrator I believe that many organizations are in that journey.
But those that will be really successful to deliver on the aspiration for the 2030 ambition will be the ones that are able to do that transition from the firefighter to the integrator in the next five years.
So to be able to provide a better like customer experience a human touch they’ll be able to integrate technology in their not day-to-day boroughs minute-to-minute interactions and that is not an easy thing to develop.
So I do believe there is a challenge that might feel a bit counterintuitive right that in a more technological era, the human element will become even more important.
I think the next critical step is that insurers start thinking about their HR strategy and people strategy and that’s not just the business of HR if it’s important for my business I as a CCO need to have a view on that.
And HR is my business partner to help me get there but I basically need to weigh in and have a clear strategy on what people I need and that’s the combination of recruiting but also building up the capabilities internally a lot of newer generation of employees for them working or someplace where they can help others.
Where there’s a purpose to what they’re doing is really important to them insurance careers can offer that you’re helping people in their greatest time of need.
As you think about what does this looks like ten years from now we think that ecosystem that you have to work with is going to grow significantly.
You’re going to need data providers you’re going to need connections to vehicles or to smartphones to get information.
There you’re going to need connections to employee systems to understand how employees are working or how they may be getting injured on the job.
How do you get the right interaction points and right partnerships and share that right information?
Those are going to be new skills new capabilities that really are going to push organizations to be much more externally oriented invest in your people.
That would be my advice just there’s a lot of technology there’s a lot of partnerships and that might change.
But I think people make the difference and if you have two right people I think that’s the ingredient for success.
There is in my opinion too much of insurers trying to improve their current processes versus completely reimagine.
What the world will look like tomorrow I would start with the notion of how would I simplify it by 75% of the cycle time how would I deduce 60% of the cost base people don’t talk and think like that they fix around 5% 10% increments versus putting an audacious goal out there.
That fundamentally requires a completely different way of thinking about the problem don’t let the different technology providers dictate, where you need to go proactively be the one that shapes in the industry. So I think you will get something new about The future of insurance claims and industry.
Thanks!
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